SB 262: Require construction contracts note variation from standard form - Ohio

As Passed by the House → As Enrolled · 5 edits · Jun 18, 2026

MODERATE

This bill updates Ohio's laws regarding public construction contracts to require clearer documentation when standard contract forms are modified. It mandates that any changes to industry-standard contract forms must be explicitly highlighted using strike-throughs, underlining, or cross-references; otherwise, those changes are legally void. The bill also refines selection processes for construction managers and design-build firms, ensuring fair evaluation of proposals and establishing specific procedures for negotiating guaranteed maximum prices.

Scope change

The bill applies to all public authorities and political subdivisions in Ohio entering into construction or design-build contracts, specifically targeting the use of industry-standard contract forms.

REQUIREMENT

Requires public authorities to visually highlight any alterations to standard construction contract forms (e.g., strike-throughs, underlining) to ensure changes are valid; unmarked changes are automatically void.

Updated the selection and ranking process for construction managers and design-build firms to include specific steps for evaluating proposals and negotiating guaranteed maximum prices.

Mandates that pricing proposals for construction managers and design-build firms include detailed breakdowns of fees, personnel, contingency plans, and general conditions.

Requires the Ohio Facilities Construction Commission to adopt rules specifying contract forms and prequalification criteria for construction managers and design-build firms.

TIMELINE

Clarified procedures for extending contract award timelines and handling delays, including how delay costs are calculated and disputed.

As Passed by the Senate → As Passed by the House · 5 edits · Jun 3, 2026

MODERATE

This bill updates Ohio construction laws to require public authorities to explicitly note any changes made to standard industry contract forms. It mandates that alterations be clearly marked by striking through old text and underlining new text, or by cross-referencing supplemental conditions. Failure to mark these changes properly renders the alteration void, ensuring the original standard language prevails. The bill also adds specific requirements for pricing proposals and negotiation procedures across construction management and design-build contracts.

Scope change

The bill expands the scope of existing statutes (Sections 9.334, 153.12, 153.501, 153.503, and 153.693) to include new procedural requirements for contract forms and pricing proposals, while repealing the previous versions of these sections.

REQUIREMENT

Requires public authorities to mark alterations to standard contract forms by striking through original text and underlining changes, or by cross-referencing supplemental conditions.

States that any unmarked alterations to standard contract forms are automatically void, ensuring the original standard language remains in effect.

Mandates specific content for pricing proposals, including key personnel lists, contingency requirements, and a divided fee proposal.

Establishes a structured negotiation process for construction management and design-build contracts, including provisions for selecting alternative firms if negotiations fail.

Updates existing statutes to incorporate the new contract form marking requirements and expanded procedural rules for project selection and pricing.

As Introduced → As Passed by the Senate · 3 edits · Mar 4, 2026

MINOR

This bill amends Ohio Revised Code sections regarding public construction contracts to require that any changes made to standard industry contract forms be clearly marked (by striking through old text and underlining new text) or cross-referenced. Failure to mark these alterations properly renders them invalid, ensuring the original standard language prevails. The changes apply to construction management, design-build, and general public improvement contracts.

Scope change

The scope of the requirement now explicitly covers the use of industry standard published contract forms across multiple sections of the Revised Code, including construction management (Sec. 9.334), general public improvements (Sec. 153.12), subcontracts (Sec. 153.501), and design-build services (Sec. 153.503 and 153.693).

REQUIREMENT

New mandatory rule requiring public authorities to visually mark alterations to standard industry contract forms by striking through original language and underlining new language, or by cross-referencing supplemental conditions.

Expanded the application of the contract form marking requirement to include specific sections governing design-build contracts and subcontracting processes.

ENFORCEMENT

New consequence stating that any alteration to a standard form that is not marked in the required manner is automatically void and without effect, meaning the original standard language controls.

Require construction contracts note variation from standard form

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